Why is Dubai real estate a good investment?
- High rental rates
Rental rates continue to go up. Rates last year went up anywhere from 10% to 50% depending on the property. With stable rising property value, rental yields have been moving upward as well. This attracts investors to the Dubai real estate market, while pushing those renting into buying Dubai property in order to avoid future rent hikes.
- Low priced
Compare a Dubai condo to a condo in a prosperous UK or American city and you will find that home or condo prices are around 1/3 the price. Tax-free incomes in Dubai compare more than favorably with UK and U.S. post-tax income levels, and borrowing costs are virtually the same. This large price difference clearly creates an incredible opportunity for Dubai real estate.
- Mortgage costs are falling
Local and international banks are creating more mortgage options by the day, and the result is pushing the cost of borrowing lower. If it costs less to borrow money for purchasing Dubai property then the net effect is a higher Dubai property value.
- New federal law
A new federal property law is expected pass in the next coming year to convert leasehold sections of Dubai to freehold. This will remove an area of uncertainty for investors and increase the pool of investors who would consider Dubai real estate a possible investment option. More investors in Dubai real estate will be good for prices.
- Dubai property: Supply is short and demand is high
Supply of Dubai apartments, villas, hotels and condominiums are not expected to meet up with demand for many years to come in the Dubai real estate market. The rapid expansion of Dubai as a business and trading hub and leisure destination for the Middle East is bringing in more and more non residents.
- Dubai is becoming famous
No city in the world is presently more successful at marketing itself than Dubai. The Dubai real estate market can only gain from this marketing. Foreign investors are already active buyers of local property. Dubai property has advantages as a tax haven. These are only just being recognized.
- Is their financing available for Dubai properties?
Some Dubai property developers offer financing while others do not. When available financing can range anywhere from 50% to 90% depending upon the property.